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Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of S31,950,000, with

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Suppose a bank enters a repurchase agreement in which it agrees to buy Treasury securities from a correspondent bank at a price of S31,950,000, with the promise to buy them back at a price of $32,000,000. Calculate the yield on the repo if it has a 5-day maturity. Calculate the yield on the repo if it has a 15-day maturity

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